new age beverages june 17 (read-only) · functional water $100mm n/a coconut water $2.5bn +22%...
TRANSCRIPT
Building the World’s Largest Healthy Beverage Company
DISCOVER A NEW AGE
Forward Looking Statements
This presentation includes “forward-looking statements,” within the meaning of the U.S. Securities Act of 1933, asamended and the U.S. Securities Exchange Act of 1934, as amended, or the “Exchange Act.” Forward-lookingstatements are not based on historical information and include, without limitation, statements regarding our futurefinancial condition and results of operations, business strategy and plans and objectives of management for futureoperations. Forward-looking statements reflect our current views with respect to future events. The words “may,” “will,”“expect,” “intend,” “anticipate,” “believe,” “project,” “estimate” and similar expressions identify forward-lookingstatements. These forward-looking statements are based upon estimates and assumptions made by us or our officersthat, although believed to be reasonable, are subject to certain known and unknown risks and uncertainties that couldcause actual results to differ materially and adversely as compared to those contemplated or implied by such forward-looking statements.
All forward-looking statements involve risks, assumptions and uncertainties. You should not rely upon forward-lookingstatements as predictors of future events. The occurrence of the events described, and the achievement of the expectedresults, depend on many events, some or all of which are not predictable or within our control. Actual results may differmaterially from expected results. These risks, assumptions and uncertainties are not necessarily all of the importantfactors that could cause actual results to differ materially from those expressed in any of our forward-looking statements.Other unknown or unpredictable factors also could harm our results. All of the forward-looking statements we haveincluded in this presentation are based on information available to us on the date of this presentation. We undertake noobligation, and specifically decline any obligation, to update publicly or revise any forward-looking statements, whetheras a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, theforward-looking events discussed in this presentation might not occur.
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Large, Addressable Market, Changing Competitive Dynamics
3
(inUSDBn)
Attractive, Rapidly Changing Industry
Consolidation Accelerating
Small Brands Leading Growth(inUSDBn)
Traditional Leaders Struggling
Source: Jefferies, Food Business News, Beverage Business Insights, SPINS, Beverage Daily, Pew Research, EthniFacts, GoodBelly, CNBC, FoodBev, BevNet, Euromonitor, Food Product Design, CapitalIQ, Food Navigator, Nielsen, Brand Adoption, Campbell Soup Co. Annual Report, Beverage Marketing, Beverage Digest, Beverage Innovation 2015
Company Mission
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Becometheworld’slargesthealthy
functionalbeveragecompany
New Age Snapshot
RTD Tea$50Bn
+10%/yr
RTD Coffee$55Bn+11%
Kombucha$1.6Bn+40%
Relaxation Drinks$150MM
+12%
Energy Drinks$39Bn+6%
- AllNatural,NoPreservatives- NoHFCS,Honey/CaneSweetened- Non-GMO,GlutenFree- #1RankedintasteinUS
- AllNatural,JamaicanCoffee- NoHFCS, 100%CaneSweetened- AtoboCocoa,HormonefreeMilk
- 100%CertifiedOrganic- 9Monthslife/non-refrigerated- >2BillionLiveProbiotics- #1RankedintasteinUS
- AllNatural,NoPreservatives- NoHFCS, Juice/CaneSweetened- Triple-FilteredBlackTea
- AllNatural,NoPreservatives- NoHFCS, 100%CaneSweetened- Non-GMO,FullVitaminB-Complex
Source: Globalindustrysegmentsizesandgrowth:BevNet,Euromonitor,Nielsen,BrandAdoption,MarketsandMarkets,TransparencyIntl,Statistica
New Age BeveragesPortfolio of Brands
Functional Water$100MM
n/a
Coconut Water$2.5Bn+22%
Rehydration $1Bn+11%
Surgical RecoveryTBD
- FirstRTDShelf-Stable,2yearshelf-life- 12differentprobioticstrains- Nochangeintaste/colorfromoriginal- Over10BillionliveCFU’s/bottle
- All-natural, organiccoconutbase- Mostelectrolytesin-market- Superiorefficacyvs.competition- Infusedwithantioxidants, vitamins
- #1multi-servecoconutwater- Firstorganiccoconutwater- Sustainably sourced,fromconcentrate- Diverselineofinnovativeproducts
Source: Globalindustrysegmentsizesandgrowth:BevNet,Euromonitor,Nielsen,BrandAdoption,MarketsandMarkets,TransparencyIntl,Statistica,BEVNET2017
New Age BeveragesPortfolio of Brands
Bottled Water$326Bn+10%
- NaturalPHBalancedatupto7.0- ArtesianSourceWater- DirectfromtheColoradoRockies
- FirstERASbeverage- ReducedNausea, gastricstress- Fasterrecovery/healing- Increasedpatientsatisfaction, comfort
Competitive Brand in TopBeverage Growth Segments
8
-4%
-2%
3%
7%
8%
10%
12%
19%
22%
35%
-10% 0% 10% 20% 30% 40%
Juices
CSD's
Sports Drinks
Bottled Water
RTD Tea
Energy
Functional Water
RTD Coffee
Coconut Water
Kombucha
US Beverages ’10-’15Segment Revenue Growth1
1) Beverage Industry Magazine, Annual Top 100 Report, IRI, Statista
National Network and Owned DSD Distribution
National Networked DSD> 20,000 outlets
Own DSD> 4,500 outlets
>8UniqueHispanicroutes
>60Brands,>600Sku’s >25TruckRoutes
20+PersonMerchandising
Team
20+PersonSalesteam
OneofthelargestindependentDSDdistributorsinUS
>6,000totaloutletscovered
Non-Alcoholic,Snacks&Alcoholic
PorNolio
• Significantcashgeneratorandprofitablestandalonebusiness• Testbedfornewproductsbeforenationalrollout• Earlywarningsystemforanynewemergingbrandsorbeveragetypes
Brent David WillisChief Executive Officer
Chuck EnceChief Financial Officer
Scott LeBonCEO, NABC, Inc.
Tom LeBonPresident - North America
Josh HillegasPresident - DSD
Mike CarwinVP - Supply Chain
Dan EpsteinCFO NABC, Inc., Controller
Terry SperstadSVP Business Development
Experience Key Expertise
• 15+ years C-Level experience in global public and private companies• 15+ years Beverage experience, building companies and operations
• 25+ years as a in the Beverage Industry• 15+ years leading, developing New Age Beverages Operations
• Significant public and private company accounting expertise• Former CFO and CEO of Marley Beverages
• 15+ years leading, developing New Age Beverage Sales• 25 years+ in the Beverage Industry
• 15+ years experience with New Age Beverages• Depth of Experience in Sales, Distribution, Operations
• 15+ years experience with New Age Beverages• Depth of experience in Supply Chain, Procurement
• 15+ years as a private company CFO and Controller for Pepsi• 22+ years in the Beverage Industry
Leadership Team
• 25+ years experience in the Beverage Industry• Depth of Key Account Sales, Natural Channel Leadership
Boardof
Directors
NeilFallonExecutiveChairman
TimHaasIndependentDirector
EdBrennanIndependentDirector
GregFeaIndependentDirector
Dr.ReginaldKapteynIndependentDirector
BrentWillisChiefExecutive
Officer
DavidVautrinIndependentDirector
What’s New in Past 11 Months…Execution.
1) AcquiredNewAgeBeverages/XingTea® (20xsize)2) Gainedblended3.7%interestdebtfromUSBank3) SoldAmericanBrewingassets,reamedfirmNBEV4) ShutdownCalifornia office/IntegratedinDenver5) Developednew3yrstrategic/1yrbusiness plans6) Emplacednewperformance-based compensation7) Developedandinstallednewoperatingvalues8) ExpandedBucha®/Xing® to>6,000newoutlets9) Capturedcostsynergiesof>$2.5MM10) Developednewcorporateidentity, branding11) ReducedBúcha®packingcosts46%12) Developedintegratedonline POSsystem13) Developednewbrandplatforms/integratedassets14) Greworganicrevenue>10%,profit>200%15) Acquired* MarleyBeverageCompany16) Integrated/TrainedNationalSalesForce17) AlignednationallywithKEHE/UNFI18) RoundedournationalDSDNetwork+19) IntegratedBúcha®,convertedtoprofitability20) GainedBúcha®registeredtrademark21) IntegratedMarleyBeverageCompany22) Grewtobecome11th largesthealthybeveragefirm23) Evaluated/Discarded20+acquisitions24) BecamePLsupplier formajorconveniencechain25) Excellentstockappreciationin‘16
11
26) ExpandedXing® Energythroughoutnaturalchannel
27) StrengthenedteaminSales,Int’l, andProcurement28) GainedBúcha®in7-11 Canada,otherconvenience29) Developednewhybriddistribution routetomarket30) Professionalized investorrelations31) GainednewtermswithGlass,Aluminum suppliers32) Integratedandexpandedmanufacturingnetwork33) Developednewintegratedwebsite/social platform34) ExpandedMarleybrandswithAhold, SEG,HEB35) Developedpartnershipwith‘WaterisLife’charity36) ExpandedMicrosoftDynamics/Encompass systems37) DevelopedandinstalledSalesDashboardsoftware38) DevelopednewBoardcommittees/charters39) InstallednewBoardofDirectors40) EliminatedPrefA/PrefBclassesofstock,warrants41) Developedshelf-stable Búcha®LiveKombucha42) CreatedNewAgeHealthSciencesDivision43) Developed/launched Aspen Pure™Probiotic44) DevelopednewPediaAde™rehydrationbeverage45) TripledHispanicDSDroutesinWest46) Agreedto$8.9MMofficebuilding sale/lease-back47) ExpandedwithJumbo, thelargestretailerinChile48) Raised$17.5MMwithworld-class institutions49) Eliminated100%ofdebt50) UplistedontotheNASDAQexchange
SupplyChainInfrastructureKeyAccountRela7onships
Na7onalDSDNetworkOwnedDSDNetwork Na7onalSalesForce
Na7onalManufacturingNetwork ScaleandResourcesDepthofMarke7ng
R&D/Innova7onFinancialStrength
New Age Beverages Business Platform
Superior,Sustainable,ProfitableGrowth
New DevelopmentOrganic Growth New Companies
BusinessPlatform
Financial PlatformBalance Sheet
Balance SheetReported Reported Coco-Libre + Proforma
Q1 2016 Q1 2017 Marley
Q1 2017 Q1 2017 Total Current Assets 668,792 9,815,501 4,738,363 14,553,864
Total Assets 1,286,950 20,828,409 15,657,605 36,486,014
Total Current Liabilities 767,603 3,893,114 1,452,933 5,346,047 - Notes payable 268,066 0 1,570,952 1,570,952 - Related party debt 25,806 0 0 0
Total Liabilities 1,061,475 3,893,114 3,023,885 6,916,999
- Common stock 15,436 31,307 0 31,307 - Series A preferred stock 250 0 0 0- Series B preferred stock 255 0 0 0- Total stockholders' equity 225,475 16,935,295 12,633,720 29,569,015
Total Liabilities & Equity: 1,286,950 20,828,409 15,657,605 36,486,014
• 5/1 ratio assets over liabilities • $29.5MM stockholder equity, diminimous debt
Financial PlatformIncome Statement
Summary Profit & Loss Q1
Reported Q1 2016
Reported Q1 2017
Coco-Libre + Marley
Q1 2017
Proforma Integrated Q1
2017Gross Revenue 669,614 11,437,638 4,062,210 15,499,848 - Net Revenues 588,800 10,787,801 3,325,720 14,113,521 - COGS 449,730 7,933,293 2,071,871 10,005,164
Gross Margin 139,070 2,854,508 1,253,849 4,108,357
Gross Margin % 23.6% 26.5% 37.7% 29.1%
Contribution Margin % 15.2% 22.6% 33.3% 25.1%
Operating Expenses 347,476 2,861,449 400,000 3,261,449
Net Income (287,791) (707,354) 669,300 (38,054)
EBITDA (237,324) (391,511) 707,300 315,789
Adjusted EBITDA (237,324) (159,586) 707,300 547,714
• $15.5MM revenue Q1, smallest quarter of the year• 29.1% Gross Margin (+ 2.6pts), $550K EBITDA
Strategies and Action Plans
Become the World Leader in Healthy Functional Beverages
…with a full portfolio of healthy functional beverages, in all relevant packages/formats, distributed in all relevant channels, across all relevant global markets
New AgeVision
Segment: RTD Tea Energy RTD Coffee Kombucha Relaxation Coconut Prem. Water$ Size: $50 Bil $39 Bil $55 Bil $600MM $150MM 2.5 Bil $50 BilGrowth: +10%/yr +6%/yr +11%/yr +40%/yr +12%/yr +23%/yr +10%/yr
New AgeGrowth Drivers
Broaden New Age DSD Operations with Expanded Portfolio, Deeper Penetration by Channel & Improved Systems
Drive Pervasive Availability on Expanded Brand Portfolio via a Key Account, Multi-Channel, Hybrid Route-to-Market Approach
Begin Penetration of Close-in International Markets to Capitalize on Global Health & Wellness Trends
Build Brand Platforms with Leading Next Gen Healthy Functional Beverages, In-Store Activation & Consumer Connecting Activities
Strengthen Organizational Capabilities and improve Margins Through Overhauling COGS and Installing ZBB on all OPEX
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Build Brand Platforms with Next Gen Healthy Functional Beverages
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“New”
Freshenexistingbrandportfoliowithaddition ofkeynewfunctionalingredients/benefits- Sparkling- CoCo- Aloe- Free- In/OutTrendingFlavors
Metric-Driven,High-ROIbrandbuilding activities(social, digital,insightbased,persuasive)
targetedtonextgenerationconsumers andmillennials.
™
™
Launch……newbrandswith……newbenefitswith……patentprotectionfor……newusageoccasions in……newdistribution channels
“Disruptive”“Breakthrough”
Broadenexistingbrandportfoliowithaddition ofkeynewfunctionalingredients/benefits- Probiotic- OtherFunctional
Our purpose is to make a diff erence for consumers, with healthier alternatives.We intend to become the world’s largest healthy functional beverage
company, by staying true to that purpose.
Join Us and Discover A New Age…of Healthy Beverages and Lifestyles.
DISCOVER A NEW AGE
FACEBOOK.COM/NEWAGEBEVERAGECO WWW.NEWAGEBEV.USFOR MORE INFORMATION, PLEASE CONTACT TOM LEBON [email protected] 303 994 2152
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New Age: One of the only BevCo’s with intellectual property
# PatentNumber Patent Subject/Outcome
1) 6,849,613 “MultipleAntioxidantMicronutrients” MicronutrientApplicationforNeurologicalTreatment
2) 7,399,755 “FormulationsComprisingMultipleDietaryandEndogenouslyMadeAntioxidantsandB-Vitamins”
MicronutrientApplicationforNeurologicalTreatment
3) 7,449,451“UseofMultipleAntioxidantMicronutrientsasSystemicBiologicalRadioprotectiveAgentsAgainstPotentialIonizingRadiationRisks”
MicronutrientApplicationforRadiationProtection
4) 7,605,145 MicronutrientFormulationsforTreatmentofDiabetesMellitus”
MicronutrientApplicationforDiabetesTreatment
5) 7,628,984 MicronutrientFormulationsforPulmonaryandHeartHealth”
MicronutrientApplicationforCardiovascularHealth
6) 7,635,469 MicronutrientFormulationsforHearingHealth MicronutrientApplicationforHearingHealth
7) 8,221,799 MultipleAntioxidantOptimalHealth/Veteran’sUltimateCompleteFormulations”
ApplicationsforBrainandBiohazardProtection
8) 8,592,392 MultipleAntioxidantMicronutrients” ExpandedApplicationforBiohazardProtection
9) 9,655,966 MicronutrientFormulationsforRadiationApplications
MicronutrientApplicationforRadiationProtection
10) P-0563*“AntioxidantMicronutrientsinElectronicCigarettes”
MicronutrientApplicationinnewdeliverysystems
11) CIP12/284,841* BioShieldforProtectionAgainstEnvironmentalExposures”
MicronutrientApplicationforBiohazardProtection
• 12 different Probiotic strains
• >10 Billion Colony Forming Units per serving• Artesian sourced water from the Colorado Rockies• Perfectly naturally PH balanced• Updated, clean brand iconography• Ergonomic packaging• Attractive margins for retailers, distribution partners• Great value for consumers
Lactobacillus-Acidophilus Bifidobacterium BifidumLactobacillus Rhamnosus B-LactisLactobacillus Salivarius B-InfantisLactobacillus Casei B-BreveLactobacillus Plantarum B-LongumLactobacillus-Lactis Streptococcus Thermophilus
Theworld’sfirstshelf-stable,
probioticwater
Developedbysomeoftheworld’s leadingphysicians,
PediaAde isworld’sfirstorganiccoconutwaterreplenishmentbeverage,
andthemostrehydratingformula.
PediaAde Component Competitor25 Calories 25
Coconut Water Base TapWater
NO RedDye#40 Yes
NO YellowDye#6 Yes
NO Acesulfame Potassium Yes
Loaded Vitamins,Minerals No
OfCourse Organic/Natural Ingredients No
Loaded Antioxidants No
Also, Yes AminoAcids, EnzymeCo-Factors No
The Result: Financial Strength and Growth
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Q12016 Q22016 Q32016
NewAgeEvolutionandGrowth
Q42016(1)MarleyandCoco-Libre onlyconsolidated infinancialresultsinQ22017
Q42016<$2.5MM
>$45MM
>$55MM
>$65MM
>$80MM
Q12017
Rank Company 2015Sales1 TheCoca-Cola Co. $44,2942 PepsiCoInc. $29,6363 NestléSA $24,4774 SuntoryHoldingsLtd. $22,4105 StarbucksCorp. $19,2006 UnileverGroup $11,5707 RedBullGmbH $7,9478 DrPepperSnappleGroup $6,2829 JacobsDouweEgberts $5,69310 DanoneGroup $7,37011 TheWonderful Co. $4,80012 KeurigGreenMountain $4,50013 WhitewaveFoodsCo. $3,30014 ItoEnGroup $3,22815 JDBGroup $3,00916 Cott Corp. $2,94417 CampbellSoupCo. $2,77718 MonsterBeverageCorp. $2,72019 J.M.SmuckerCo. $2,67620 Refresco-Gerber $2,25721 Britvic Plc. $1,85622 NiagaraBottling LLC $1,83423 GlanbiaPLC $1,55124 LassondeIndustriesInc. $1,44925 TheKraft HeinzCo. $1,37526 TataGlobalBeveragesLtd. $1,33027 LivingEssentialsLLC $1,27228 ArizonaBeverageCo. $1,25029 Hormel FoodsLLC $1,10330 OceanSprayCranberries $1,096
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Non-Alcoholic Beverage Company Rankings 2015Rank Company 2015Sales31 C&CGroup PLC $78332 RockstarInc. $71633 TalkingRainBeverageCo. $65934 Peet'sCoffee&TeaInc. $65035 National BeverageCorp. $64636 Florida'sNatural Growers $60237 BigRed/AllSport $50138 PolarBeverages $45039 FarmerBros.Co. $44440 GTSynergy $41541 SunnyDelightBeverages $41442 SodastreamInternational $41343 VitaCoco $40044 TreeTopInc. $39745 TampicoBeveragesInc. $33546 HarvestHillBeverageCorp. $28247 LangerJuiceCo.Inc. $18348 Carolina BeverageCorp. $18249 JambaInc. $16250 R.C.BigelowInc. $16051 OldOrchard Brands $15752 BaiBrands $12553 TheHainCelestial Group $12054 LifewayFoods $11955 BrooklynBottling $9556 Welch's $8257 SunOrchard Inc. $7358 NewAgeBeverageCorporation $5859 HintWater $5660 BodyArmor $40
The Result:Now 55TH Largest Globally
Source:
>$80
…and Accelerating Both Top and Bottom Lines
Summary Profit & Loss YTD April 2017
Reported YTD April 2016
Reported YTD April 2017
Coco-Libre + Marley
YTD April 2017
Proforma Integrated
YTD April 2017Gross Revenue 933,652 16,061,345 4,389,269 20,450,614 - Net Revenues 813,359 15,065,022 3,587,719 18,652,741 - COGS 571,065 10,954,415 2,238,530 13,192,945
Gross Margin 242,334 4,110,607 1,349,279 5,459,886
Gross Margin % 29.8% 27.3% 37.6% 29.3%
Contribution Margin % 19.6% 24.1% 33.0% 25.8%
Operating Expenses 509,152 4,002,717 535,174 4,537,891
Net Income (379,093) 2,030,263 612,236 2,642,499
EBITDA (312,870) 2,435,123 654,417 3,089,540
• NBEV one of the few profitable small cap beverage firms• Price to Sales ratio 2.5 times below the peer group average
28
2/16 @$0.19/share2/17 @$3.50/share6/17 > $6.00/share
NBEV: Still in the 1st mile….
• NBEV one of the few profitable small cap beverage firms• Price to Sales ratio 2.5 times below the peer group average
Symbol Exchange Revenue SharePrice
Price to Sales
Market Capitalization
Shares Outstanding
NBEV NASDAQ $80.00 $6.50 2.6 $209.0 31.3 REED NYSE $42.40 $3.10 1.0 $43.3 14.0CELH NASDAQ $22.76 $3.93 7.6 $173.3 44.1 LTEA NASDAQ $1.90 $5.13 22.6 $43.0 8.4 JSDA OTC $15.60 $0.51 1.4 $21.1 41.3MNST NASDAQ $3,049.00 $49.43 9.3 $28,225 571.0 DPS NASDAQ $6,440.00 $91.90 2.7 $16,890 183.8 FIZZ NASDAQ $705.10 $90.51 6.0 $4,214 46.6 PEP NYSE $62,799.00 $115.05 2.6 $164,522 1,430.0 KO NYSE $41,863.00 $44.39 4.5 $191,321 4,310.0 Group Avg. 6.0NASDAQ Avg. 3.2
PeerGroupComparisonasof6/1
Strat plan ’17 - ’19 Driven by Organic Growth
Strategic Plan Building Blocks - By Growth DriverRevenue Contribution ‘17 – ‘19
Current Strategic Plan Stretch Plan
2016 LE Category Growth @10%
DSD Expansion
US Distribution Expansion
International Penetration
New Products/Aspen
External Growth
2019 Strategic Plan
(in USD MM)
Revenu
eGrow
th
Summary: Emerging Competitive Advantages
1) Emergingcapabilitytodrivesuperiororganicgrowthoncorebusiness- 7-10%toplinegrowth averagelast3quarters- Distributionexpansion,leverageofDSDnetwork- KeyAccountexpansion…withgoodin-storeexecution- Pervasivemarketing,Portfolioevolution
1) Emergingcapabilitytoacquireandintegratenewcompanies- Averagingoneacquisitionperquarter (Búcha,Marley,Coco-Libre,PMC)- Experiencetointegrate,consolidateintoNewAgePlatform- DisciplinetoeliminateOPEX- Significanttop-linescaleandbottom-lineprofitimpact
1) Emergingcapabilitytodevelopdisruptivenewproducts- AspenPureProbiotic- PediaAde- EnhancedRecovery- OrganicMarleyMate
Building the World’s Largest Healthy Beverage Company
DISCOVER A NEW AGE